Basic And Diluted Net Income Per Share

6 Months Ended

Jan. 31, 2013

Basic And Diluted Net Income Per Share [Abstract]

Basic And Diluted Net Income Per Share

2. Basic and Diluted Net Income per Share

Basic net income per common share is computed by dividing net income by the basic weighted average number of common shares outstanding during the period.  Diluted net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period and reflects the potential dilution that could occur if all of the Company’s outstanding stock options that have a strike price below the market price were exercised (calculated using the treasury stock method). 

The following table is a reconciliation of basic and diluted net income per common share for the periods indicated (in thousands, except per share data):

	Three months ended January 31				Six months ended January 31
	2013		2012		2013		2012
Net income	$	4	$	61	$	117	$	333
Weighted-average common shares outstanding		8,528		8,006		8,325		7,966
Effect of dilutive stock options and warrants		231		50		173		50
Diluted weighted-average common shares outstanding		8,759		8,056		8,498		8,016
Earnings per share
Basic	$	0.00	$	0.01	$	0.01	$	0.04
Diluted	$	0.00	$	0.01	$	0.01	$	0.04
Options and warrants that could potentially dilute net income per share in the future that are not included in the computation of diluted net income per share, as their impact is anti-dilutive		280		823		735		823